According to a new study to be published in the Journal of Empirical Legal Studies, African Americans are twice as likely than Caucasians to be encouraged to file for Chapter 13 bankruptcy.

When one files for Chapter 13 bankruptcy, he or she must devote all disposable income to paying back the debts over a three or five year period. Compared to other bankruptcy options, Chapter 7 usually has a higher success rate and can allow debtors to erase their debt in the matter of a few months.

The study suggests that African Americans are being steered towards filing for Chapter 13 while other races, even with similar financial histories, are being directed to file for Chapter 7 bankruptcy.

If you or someone you love is in need of legal advice or representation for your bankruptcy filing, contact the Houston Chapter 13 bankruptcy lawyers of the Law Office of Russell Van Beustring at 713-973-6650.